Wisconsin Wants To Tax All Internet Downloads?

from the just-'cause dept

As with many tax proposals there doesn't seem to be much of a justification for this, but Wisconsin's governor wants to put a 5% tax on all downloaded media. About the only justification seems to be that a buyer would pay a similar sales tax if they bought something at a local store. Of course, the original justification for the local sales tax was that people were making use of public goods, such as the roads that took them to the store. That's not true any more when you're just downloading something. Of course, as with sales tax on stuff purchased out-of-state via e-commerce sites, this tax would be voluntary -- meaning no one would pay it. Still, that won't stop the governor's political opponents from letting everyone know that the governor wants to "tax their iPod." With that in mind, you have to wonder why it was proposed at all. It's clear no one will pay it, and it gives plenty of ammo to political opponents.

Refund

Re: Refund

I already get taxed at 6 percent when I buy iTunes here in Indiana. As far as I know, Apple is (at least) charging normal sales tax on downloads in every state where they have a physical presence (Apple Store). I wouldn't be shocked to find out that they simply go ahead and charge everyone in the US sales tax.However, I am opposed to any state trying to have a separate/larger/additional tax on digitally downloaded items. I am in favor of enforcing existing laws and treating downloads (of software and the like) as mail order purchases for which it is the purchaser's responsibility to submit taxes to the appropriate state authority.

Re: It's been a long winter.

Yah, but Wisconsin is known for having outrageously high state taxes already anyway… the last thing a rural Midwestern state suffering from rural flight needs to do is provide MORE incentives for people to leave and or stay away… and I say that as a person considering moving to Wisconsin.